Study On The Theroy And Policy Of Interest Rate Liberalization

The thesis is focused on the theory and policy of interest rate liberalization based on the theory of financial depression and financial liberalization with the methodology of Normativism and positive analysis.The aims of the study are that (1) the meaning, conditions and the path of interest rate liberalization which is important in China; (2) the structures and status of interest rate in Chinese financial system that is not suitable for national economy; (3) the effect of interest rate policy praticed by the People's bank of China (4) the foundermantal obstacles laying on road towards the interest rate liberalization; (5) the financial risk during the interest rate liberalization which will affect and has affected the financial status; (6)the strategy taken by China in order to realizy the the interest rate liberalization.The structure of the study are as follows: Chapter 1 introduces reaching background; Chapter 2 is reference of the interest rate liberalization; Chapter 3 gives an overview of the theoretical framework of the interest rate liberalization; Chapter 4 explains the ways of the interest rate liberalization taken by different countries; Chapter 5 evaluates the status of China interest rate liberalization; Chapter 6 analyzes the effect of interest rate in fifty years; Chapter 7 is the aims of interest rate liberalization in China; Chapter 8 explains the main obstacles laying on the road towards interest rate liberalization; Chapter 9 intraduces the necessary strategy of that should be taken; Chapter 10 researches the risk after-interest rate liberalization; Chapter 11 gives conclusions and policy.China's government has adopted many measures to promote free competition in commodity market in recent twenty-six years, but in the financial market the interest rate, the price of capital, is still controlled by the government to some extent. This thesis is about the theory and policy of interest rate liberalization in China. The first part includes the Chapter 1, Chapter 2, Chapter 3 and Chapter4. Chapter 1 explains the foundermantal researching method taken in this thesis. The methodology of and positive analysis are combined during the study. The value and the innovation are stated in this part. The origin of data is explained in this part. Chapter 2 explains the reference of the theory of interest rate liberalization. From theClassical School of economics to the Maynard Keynesim, they all emphasized that interest rate is decided by market. Interest rate influences the investment and money demand when it is decided by market. The cole or financial depression is the regulation of interest rate and exchange rate. The first step towards the financial liberalization is to deregulate the interest rate. The fact shows that moneytary policy affect national economy only when it is decided by the market and reflects the supply and demand. Chapter 3 outlines the foundermantal concepts about interest rate liberalization. The auther maintains the essence of interest rate liberalization is changing the price systems of captital decision. The aim of interest rate liberalization is to perfect the allocation of financial resource. Chapter 4 analyzes the models and its characteristics interest rate liberalization implemented in different countries. The five models of interest rate liberalization are deregulation model, transition model, inner and outside model, fast model and slow model.The second part includes Chapter 5, Chapter 6, Chapter 7, and Chapter 8. This part analyzes the status of interest rate liberalization and financial structure, the effect of interest rate policy and obstacles of interest rate liberalization. Chapter 5 evalueates the procession of China's interest rate liberalization. The result shows the degree of interest rate liberalization is not enough for the needs of monetary policy and national economy; the degree of factual liberalization is lag of the nominal liberalization of interest rate liberalization, although the deregulation in monetary market has been carried out. Chapter...